BusinessTN

An experienced oil and gasoline industry executive, Bob Campbell understands the cyclical nature of his market and how to squeeze out every penny of profit. But since the foreign attacks on the United States in 2001, Campbell’s patriotism has become as important to him as profit margins.

“We are buying 60% of our crude oil from people who do not like us,” Campbell says. “The time has come to lessen our dependence on Middle East oil."

For Campbell, one solution is to start selling and marketing B20, a soybean-based biodiesel fuel that can be burned in a standard diesel engine. B20 is made of 20% soybean derivative and 80% standard diesel fuel. “If I can get 20% of the fuel to be based on a renewable source, it will make a difference,” says Campbell, owner of Jackson-based Panther Oil and Panther Energy companies.

Campbell, who spent 20 years as a sales executive with Valvoline, founded the Panther companies in 1996. The companies distribute lubricants and fuel to businesses in Tennessee, Alabama, Arkansas and Kentucky.

A bill passed in the General Assembly this year will aid Campbell’s plans to expand his biodiesel operations in Jackson. The bill provides 80% funding for construction of biodiesel delivery systems. Campbell plans to use the help to build a high-tech unmanned biodiesel pumping station. “Funding soy biodiesel helps farmers, helps the environment and creates jobs,” says bill sponsor Sen. Don McLeary (D-Jackson).

Biodiesel has grown steadily over the past decade. More than 1,000 petroleum distributors and 200 retail stations provide biodiesel across the country. In late 2004, it was estimated there were about 200 million gallons of biodiesel capacity.

Campbell decided to make the switch to B20 in his own tanker trucks in March, so he could see first-hand any differences between the new fuel and typical diesel. “We have found it to be very clean burning with no unpleasant odors,” he says. “It also cleans out your fuel system of any buildup.”

The B20 costs about 3%-5% more than typical diesel. But this price gap could easily close if oil prices continue to climb and production capacity of biodiesel increases, Campbell says.

But is the owner of a fleet of expensive trucks going to put just anything in the tank? There is a perception—dispelled by those who sell and market biodiesel—that the new fuel does not perform as well, causes degradation and is generally a risky move. Chris Todd, owner of erosion control and grassing company Envirogreen, was an easy sell once he found he could pump B20 straight into his existing trucks without any modifications. “This product has better emissions than straight diesel with no loss of performance,” says Todd, whose fleet of eight diesel pickup trucks and five pieces of off-road equipment consume about $2,000-$3,000 a month in fuel. “Once processing is done closer to home and we can get a facility that uses local crops to make the product, we will see a significant price reduction,” he says.

Campbell, likewise, is optimistic. “If prices stay up there, it makes it more feasible for alternative fuels and renewables,” Campbell says. “Every time there is a new car, there is need for more oil.”